Suntec REIT - DBS Research 2015-10-23: Headwinds Abound

SUNTEC REIT SUNTEC REAL ESTATE INV TRUST T82U.SI 

Suntec REIT - HEADWINDS ABOUND 

Hemmed in by double headwinds 

• In the year ahead, the REIT’s earnings will be driven by new contribution from recently completed Suntec City Mall redevelopment. Due to headwinds in the retail sector however, we believe that earnings upside is capped as the mall’s rents have underperformed the Manager’s initial target. 
• In addition, there could be downside risk for the REIT’s office assets, which are expected to see some volatility in rents and occupancies when new office supply enters the CBD from 2016 onwards. 

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